The federal Liberal government has announced that its incentives for electric vehicle subsidies will “pause” on Mar. 31, or earlier if the program’s funding is fully exhausted.
With Prime Minister Justin Trudeau’s prorogation of Parliament, the federal government only has until the end of March before Ottawa runs out of money and has to vote on a supply bill.
The Zero-Emission Vehicles Program offered financial incentives to Canadians purchasing electric vehicles since 2019 and was touted by Transport Canada as a success in a press release.
However, the looming suspension raises questions about the government’s ability to sustain momentum in its push for widespread EV adoption.
Transport Minister Anita Anand touted the iZEV program’s record, noting that over 546,000 zero-emission vehicles have received taxpayer subsidies, contributing to a record zero-emission vehicle market share of 16.5% in the third quarter of 2024.
Despite these figures, Canadians’ overall interest in EVs appears to be waning. A recent AutoTrader survey revealed that fewer than half of Canadians plan to make their next car electric, marking the second consecutive year of declining interest.
The program’s pause coincides with the Trudeau government’s targets for mandatory EV sales and phasing out of new gas-powered cars: 20% of new vehicle sales must be electric by 2026, 60% by 2030, and 100% by 2035.
Achieving these benchmarks could prove difficult without continued incentives, particularly as Canadians express concerns over high EV prices, limited charging infrastructure, and the practicality of owning an EV in rural and remote areas.
While the iZEV program winds down, the government’s Incentives for Medium- and Heavy-Duty Zero-Emission Vehicles Program will remain active until March 31, 2026, subject to funding availability. However, this program targets businesses rather than individual consumers.
